WEBTOON INVESTOR ALERT: Shareholder Class Action Lawsuit Filed Against WEBTOON Entertainment Inc. (NASDAQ: WBTN); Investors Encouraged to Explore Their Options with Counsel

By: DiCello Levitt LLP via GlobeNewswire

September 10, 2024 at 16:35 PM EDT

SAN DIEGO, Sept. 10, 2024 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed on behalf of purchasers or acquirers of WEBTOON Entertainment Inc. (NASDAQ: WBTN) (“Webtoon” or the “Company”) common stock pursuant and/or traceable to the Company’s registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with its June 2024 initial public offering (“IPO”). Plaintiff pursues claims under the Securities Act of 1933.

Webtoon investors have until November 4, 2024 to seek appointment as lead plaintiff of the Webtoon class action lawsuit.

If you purchased Webtoon common stock and suffered substantial losses, and you wish to obtain additional information or serve as lead plaintiff in this lawsuit, you may submit your information and contact us here: https://dicellolevitt.com/securities/webtoon/.

You can also contact DiCello Levitt attorneys Brian O’Mara or Hani Farah by calling (888) 287-9005 or emailing investors@dicellolevitt.com. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.

Case Allegations

Webtoon is an entertainment company focused on mobile webcomics and visual storytelling.

On June 27, 2024, Webtoon conducted its IPO, selling 16,371,549 shares of the Company’s common stock at $21.00 per share.

As alleged in the Webtoon complaint, on August 8, 2024, just six weeks after the Company completed its IPO, Webtoon announced its financial results for second quarter 2024, which had ended just days after the IPO closed. The Company reported revenue of $321 million, which represented total revenue growth of only 0.1%. Webtoon further revealed that advertising revenue and IP Adaptations revenue declined by 3.6% and 3.7%, respectively. The Company revealed that any revenue and revenue growth had been “offset by the Company’s significant exposure to weaker foreign currencies.” Webtoon also reported a quarterly net loss of $76.6 million, or 70 cents.

On this news, Webtoon’s stock plummeted 38.2%, falling $7.88 to close at $12.75 per share on August 9, 2024, on unusually heavy trading volume. By the commencement of the Webtoon lawsuit, Webtoon common stock traded as low as $12.45 per share, a more than 40% decline from the $21.00 per share IPO price.

The Webtoon complaint alleges that the Registration Statement contained materially false and misleading statements and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Webtoon complaint alleges that Defendants failed to disclose to investors that: (1) the Company experienced a deceleration in advertising revenue growth; (2) the Company experienced a deceleration in IP Adaptations revenue; (3) the Company experienced exposure to weaker foreign currencies which offset revenue growth; and (4) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and lacked a reasonable basis.

About DiCello Levitt

At DiCello Levitt, we are dedicated to achieving justice for our clients through class action, business-to-business, public client, whistleblower, personal injury, civil and human rights, and mass tort litigation. Our lawyers are highly respected for their ability to litigate and win cases – whether by trial, settlement, or otherwise – for people who have suffered harm, global corporations that have sustained significant economic losses, and public clients seeking to protect their citizens’ rights and interests. Every day, we put our reputations – and our capital – on the line for our clients.

DiCello Levitt has achieved top recognition as Plaintiffs Firm of the Year and Trial Innovation Firm of the Year by the National Law Journal, in addition to its top-tier Chambers and Benchmark ratings. The New York Law Journal also recently recognized DiCello Levitt as a Distinguished Leader in trial innovation. For more information about the Firm, including recent trial victories and case resolutions, please visit www.dicellolevitt.com.

Attorney Advertising. Prior results do not guarantee a similar outcome.

Media Contact

Amy Coker
4747 Executive Drive, Suite 240
San Diego, CA 92121
619-963-2426
investors@dicellolevitt.com